15.C.
City Council Meeting
- Meeting Date:
- 01/07/2014
- Co-Submitter:
- Michelle D'Andrea, City Attorney
- From:
- Sarah Darr, Housing Manager
Information
TITLE:
Consideration and Possible Approval of Agreement: With Flagstaff Shelter Services for Homeless-Shelter Services in an amount of $102,000.
RECOMMENDED ACTION:
1) Approve the Agreement with Flagstaff Shelter Services in an amount of $102,000; and
2) Authorize the City Manager and Housing Section Staff to execute the documents that may be necessary from time to time under the Agreement.
2) Authorize the City Manager and Housing Section Staff to execute the documents that may be necessary from time to time under the Agreement.
Policy Decision or Reason for Action:
The City desires to obtain community health and human services, in particular, homeless-shelter services. In 2009, after procurement, the City awarded a favorable lease agreement to Flagstaff Shelter Services in consideration for their agreement to provide homeless-shelter services on the leased City property. Instead of executing the lease, the City exchanged that property for a parcel owned by W.L. Gore & Associates. The exchange will allow the City to continue a FUTS trail. The City now wishes to secure continued homeless-shelter services in the City of Flagstaff by providing funds to Flagstaff Shelter Services that are approximately equivalent in value to the value of the previously awarded lease.
Financial Impact:
In 2004, the citizens of Flagstaff passed a bond measure to allow for acquisition of property for the Flagstaff Urban Trails System (FUTS). $102,000 is available from the FUTS funds to obtain property to provide a connection to two (2) existing FUTS segments. These segments will be on the property that the City is obtaining from W.L. Gore if the Council approves the property exchange. Those funds would then be used to help provide for homeless-shelter services . The City will require Flagstaff Shelter Services to execute a promissory note and a deed of trust in the amount of $102,000. So long as Flagstaff Shelter Services or its successor provides homeless-shelter services in Flagstaff for a period of ten years, the note will be forgiven. Also, for each year that homeless-shelter services are provided, one-tenth of the of the amount of the property lien will be forgiven.
Connection to Council Goal:
- Effective governance
Previous Council Decision on This:
April 7, 2009 - Council approved Resolution 2009-15 declaring Flagstaff Shelter Services the highest responsive, responsible proposer for the development of a homeless shelter on approximately 0.77 acres of City-owned property located at 2675 East Industrial Drive.
Options and Alternatives:
- Approve the agreement with Flagstaff Shelter Services with different conditions
- Do not approve the agreement with Flagstaff Shelter Services
Background/History:
In 2009, Flagstaff Shelter Services responded to a request for proposals to lease city-owned property for the purpose of developing and operating a homeless shelter. City Council declared the agency the highest responsive, responsible proposer via Resolution 2009-15 on April 7, 2009 and agreed to enter into a long-term ground lease within three years contingent upon Flagstaff Shelter Services receiving sufficient funding for the development and initial operations for the homeless shelter and receiving approval for the development from the City of Flagstaff Development Review Board. Ultimately, the agency decided to purchase an existing building in another location to use as the shelter and no longer pursue development.
The City negotiated a property exchange involving the property previously identified for the development of a homeless shelter with W.L. Gore to obtain property that will be used as a continuation of the Flagstaff Urban Trails System (FUTS) and as a result, $102,000 is available from the FUTS fund as compensation for the property obtained from Gore.
The City is willing to enter into an agreement with Flagstaff Shelter Services to provide homeless-shelter services. In exchange for those services the City will use the funds made available from the FUTS in an amount not to exceed the appraised value of the City property formerly identified for Flagstaff Shelter Services to develop upon.
The City negotiated a property exchange involving the property previously identified for the development of a homeless shelter with W.L. Gore to obtain property that will be used as a continuation of the Flagstaff Urban Trails System (FUTS) and as a result, $102,000 is available from the FUTS fund as compensation for the property obtained from Gore.
The City is willing to enter into an agreement with Flagstaff Shelter Services to provide homeless-shelter services. In exchange for those services the City will use the funds made available from the FUTS in an amount not to exceed the appraised value of the City property formerly identified for Flagstaff Shelter Services to develop upon.
Key Considerations:
Flagstaff Shelter Services has a successful history of providing valuable shelter and services for homeless individuals in Flagstaff. A Deed of Trust and Promissory Note will be recorded stating that the $102,000 amount will be forgiven at the rate of one tenth (1/10th) a year for ten (10) years as long as the agency continues to provide homeless-shelter services. If during those ten years the agency ceases shelter services, the remaining unforgiven balance is due and payable to the City of Flagstaff.
Other general agreement conditions, such as insurance and indemnification, also apply.
Other general agreement conditions, such as insurance and indemnification, also apply.
Community Benefits and Considerations:
The need for homeless shelter services in Flagstaff is well documented in the 2006-2015 Consolidated Plan as well as by other community needs assessments and planning documents. Flagstaff Shelter Services has been providing shelter and services to the homeless since 2006 and has a successful history of administering other funds awarded by the City of Flagstaff.